DTC’s Daily Digest brings you the latest news on the world’s fastest growing direct-to-consumer brands. In today’s edition: Revolut looking to raise at least USD$500m; Albertons makes Plated part of its private brands programme; and We Work looks to “pre-2017” model. 

Revolut looking to raise at least USD$500m

British-based digital banking app Revolut is in talks with investors to raise at least USD$500m next year to fund a global hiring spree as it expands in markets including the United States and Japan.

“We want to raise at least USD$500m in direct equity and potentially, maybe at a later stage, up to USD$1bn in convertible (debt),” its CEO and co-founder Nikolay Storonsky told Reuters in an interview on Tuesday.

“We have done soft marketing with investors and we are continuing doing it, so hopefully in the next several months, we’ll get it done,” Storonsky said of the fund raising.

Revolut has grown at breakneck pace since its launch in 2015 and now boasts more than 8 million customers. It is embarking on a global expansion that has seen it launch in the United States and Singapore this year and expand partnerships with payments firms Visa and Mastercard. Storonsky said the start-up was set to increase its staff to 5,000 by late next year from 1,800 currently.

Albertons makes Plated part of its private brands programme

The Plated meal kit brand, which Albertsons Cos. acquired in 2017, is now part of the retailer's private brands programme, known as Own Brands.

Albertsons Cos. is shifting its Plated brand from a subscription meal solution to a comprehensive in-house culinary brand that will join the company’s lineup of popular private label products.

As a result, Plated’s subscription service will be phased out at the end of November, the company said. The Plated brand will expand with new product offerings in additional stores in 2020.

"Our vision for Plated includes an expanded set of products that goes far beyond a dinner-based solution and into a comprehensive in-house culinary brand,” said Geoff White, executive vice president and chief merchandising officer at Albertsons. “With a broader scope of offerings, we see Plated solving customer demands around convenience, lifestyle and cooking experience, while adding yet another layer of interest to our in-store journey.”

The marketing and product development team behind the company’s own brands will manage the expansion of Plated into a holistic home meal solution. That same team has grown billion-dollar brands such as O Organics, Lucerne, Signature SELECT and Signature Café.

We Work looks to “pre-2017” model

WeWork is going back to its roots and pivoting back to what it’s called a “pre-2017” model, as it lays out its turnaround plan. 

The strategy isn’t entirely a rerun of the past; WeWork anticipates improvements. The company specifically calls for more focus on its “member experience,” and notes that its leadership model will be lean on “proven executives” to clean up what its previously “founder-led” strategy resulted in.

WeWork’s plan has four key planks: cutting extraneous operations, layoffs, boosting its real estate footprint, and sorting out its internal and external relationships.

While there have been reports that WeWork is dramatically cutting back on new leases, the firm claims that it expects “record high” new “desk openings” in the fourth quarter. That should help the company keep up its torrid growth; how those openings will impact its cash position and operating burn is not clear.

WeWork also claims that it also had a very busy Q3 when it came to desk additions, adding 108,000 new desks in the three-month period. According to its own calculations, that figure was up 109% compared to the year-ago result.

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